The $15 billion merger between TPG and Vodafone Australia has been approved by TPG shareholders. Image by Dan Himbrechts/AAP PHOTOS

TPG shareholders have voted in favour of the internet service provider’s merger with Vodafone Hutchison Australia.

The $15 billion merged entity is expected to create a stronger rival for Telstra and Optus, as the two were the third largest providers in Australia of their respective internet and mobile services.

Over 99 per cent of those voting at the scheme meeting approved the merger, and the new entities brands will include Vodafone, TPG, iiNet, Lebara, AAPT and Internode.

TPG executive chairman David Teoh said the fixed line and mobile phone services of the two providers are complementary.

“The merged company will deliver better services and more competitive value propositions to Australian customers,” he said.

Vodafone Hutchison Australia Chief Executive Inaki Berroeta said the scheme vote is one of the final steps towards implementation and the new company should be brought together in two and a half weeks.

“The merger will create a leading full-service telecommunications provider which will be well-positioned to drive stronger competition in the market and deliver benefits to customers and shareholders,” he said.

TPG shareholders will receive a special dividend in the range of 49 to 52 cents per share before the merger, and will own 49.9 per cent of the merged group, while Vodafone Hutchison Australia shareholders will own 50.1 per cent.

The merger is now waiting for approval from the NSW Supreme Court, with a hearing set for 26 June 2020.

Once the court approval is finalised, shares in TPG will be suspended from trading on the ASX on June 29 and the new company is expected to be listed on the ASX as TPG Telecom Limited under the code TPG on June 30.

The merger has received the green light from the Foreign Investment Review Board, as well as the Federal Court, after competition watchdog ACCC initially opposed the combination.

At the close of trade on Wednesday, shares in Hutchison Telecommunications Australia, which owns Vodafone Australia, were 6.06 per cent higher at 17.5 cents, while shares in TPG were up 0.45 per cent to $9.02.

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TPG shareholders approve Vodafone merger